SCHEDULES

SCHEDULE 12Tax relief for expenditure on research and development

Part 3The relief

11Deduction in computing profits of trade

1

This paragraph applies where a company is entitled to relief under F1Part 1, 2 or 2A of this Schedule for an accounting period.

2

In so far as the company’s qualifying expenditure for that period is deductible in computing for tax purposes the profits for that period of a trade carried on by the company, it is entitled (on making a claim) to an additional deduction in computing the profits of the trade for that period of an amount equal to 25% of the qualifying expenditure.

3

In sub-paragraph (2) “qualifying expenditure” means—

a

in the case of relief under Part 1, qualifying R&D expenditure (see paragraph 3), F2...

b

in the case of the relief under Part 2, qualifying sub-contracted R&D expenditure (see paragraph 8) F3and

c

in the case of relief under Part 2A, qualifying additional SME expenditure (see paragraph 10B).